Behavioural Reallocation after the Online Gaming Ban: A Multi-State Survey-Based Analysis

Background and Context

The enactment of the Promotion and Regulation of Online Gaming Act, 2025 (PROG Act) marked a significant regulatory shift in India’s digital gaming landscape by introducing a nationwide prohibition on online real-money gaming (RMG). The policy was driven by concerns related to financial harm, addiction, fraud, and broader social risks. However, it raises an important question on how users respond when regulated domestic options are withdrawn while offshore alternatives remain accessible. Evidence from digital markets suggests that such restrictions often lead to behavioural adjustments rather than complete cessation, with users shifting to alternative channels, including offshore platforms. Early trends in India indicate a similar pattern of reallocation, with increased engagement on platforms operating outside the domestic regulatory framework, thereby raising concerns around consumer protection, financial exposure, and regulatory oversight.

In this context, understanding behavioural reallocation is critical to assessing the effectiveness and unintended consequences of the regulation. To generate empirical evidence, CUTS International conducted a phased, survey-based study across Delhi NCR, Tamil Nadu, and Maharashtra between November 2025 and January 2026. The study engaged 3,000 respondents who had previously participated in online money-based gaming, supported by qualitative interviews, using a consistent pre–post analytical framework across states. This approach enables a robust and comparative analysis of behavioural shifts, offering insights into how users adapt in digitally open markets and informing more balanced and evidence-based policy responses.